After being fired, I became the light of medicine

Chapter 216 Mr. Zhang, I suggest you build a medicinal herb planting base!

He Ping's words were not made without reason, but were made after careful consideration.

After all, everyone now knows that the most important ingredient of Qingshan Pharmaceutical's "Lung Toxin Clearing Granule" is actually a chemical molecular scavenger that can clear "T14 protein".

As for the Chinese medicinal materials, they are not that important.

As long as the quality of high-quality Chinese medicinal materials can be slightly lowered to medium-quality ones, not only will the efficacy not be affected, but all supply problems will be solved, and even profits can be greatly increased.

Zhang Yang frowned instead.

Having worked with He Ping for so many years, he knew very well that He Ping was a down-to-earth person and would never take the initiative to make such suggestions to him unless it was absolutely necessary.

Slow down:

"He Ping, has the supply and price increase of high-quality medicinal materials really reached such a critical level?"

"Ah."

He Ping nodded gently without hesitation.

"To be honest, when you first informed me about the production of 'Lung Toxin Clearing Granules', I immediately contacted several domestic manufacturers that specialize in providing high-quality Chinese medicinal materials and purchased more than 400 tons of various high-quality medicinal materials at one time."

"This is the amount needed to produce an ordinary Chinese patent medicine for more than half a year."

"Later, when you emphasized again the need to expand production capacity and stock up, I specially arranged for someone to go to the largest 'trade centers for Chinese medicinal materials' in the country: Bozhou, Anguo, Yulin and other places to purchase the high-quality medicinal materials we need."

"In addition, we also have people in major Chinese medicinal materials distribution centers in Southeast Asia, such as Laos and Vietnam."

"We can say that we have basically bought out all the high-quality medicinal materials in the hands of dealers and retail traders in major markets across the country, and even snatched up a lot of high-quality medicinal materials that were to be exported to Japan and South Korea."

"but……"

As he spoke, He Ping paused, a look of helplessness showing on his face.

"But like I said just now, everyone in the market now knows that we need to purchase a large amount of high-quality medicinal materials for our 'Lung Du Qing Granules'. In addition, there are fewer and fewer high-quality medicinal materials circulating in the market, so everyone has started to raise the price, making it increasingly difficult for us to purchase them."

“Of course, thanks to our early purchase of a large number of high-quality Chinese medicinal materials, we currently have more than 2000 tons of inventory in the warehouse;

Based on the normal 20% loss of Chinese patent medicine production, we can still produce at least 5000 million boxes of 'Fei Du Qing Chong Ji'."

"It's just... this is not a long-term solution. If we continue to consume at this rate, we will soon run out of stock."

"So, Mr. Zhang, we really must make plans in advance!"

Zhang Yang breathed a sigh of relief. He could understand He Ping's anxiety and difficulties.

But he really didn't expect that in just over a month, the demand for "Lung Toxin Clearing Granules" was just a little bit higher, which would cause such a big fluctuation in the entire high-quality Chinese medicinal materials market in the country.

Ultimately, it’s still a problem of insufficient supply of high-quality Chinese medicinal materials.

Thinking of this, he did not directly answer He Ping's question, but said softly:
"He Ping, why is there so little supply of high-quality Chinese medicinal materials in our country?"

"The demand has increased a little, and that's why there's such a big fuss?"

Hearing this, He Ping couldn't help but sigh.

"It's a long story, but to sum it up, I think it can be summed up in four words: too much demand!"

"Too much demand?"

“Well, the demand is just too great!”

He Ping saw that Zhang Yang was a little surprised and explained:
"Mr. Zhang, more than 20 years ago, I worked in a state-owned Chinese medicine factory. I remember that our factory only purchased more than 5 million tons of medicinal materials a year at that time."

"This is not one month's purchase volume, this is a year's purchase volume!"

"But what about now? I won't use Lotus Pharmaceuticals as an example. Let's just take a medium-sized Chinese medicine factory as an example. The annual procurement volume is easily several thousand tons."

"This gap is clearly visible to the naked eye!"

"Not only has the demand from pharmaceutical companies increased significantly, I remember that more than 20 years ago, the amount of drug residue produced by Chengdu Traditional Chinese Medicine Hospital in a month was at most 3 to 5 tons. But what about now?"

"As far as I know, large trucks carry away the drug residue every week. In normal months, the amount of drug residue can reach about 40 tons, not to mention the peak of respiratory diseases in winter, when the amount can even reach 50 to 60 tons."

"This is the case for Chinese medicine factories and hospitals, and the consumption of Chinese medicine pharmacies in the private sector has also increased significantly. It can be said that the overall consumption of Chinese medicinal materials has increased by more than ten times in recent years!"

Zhang Yang remained silent.

With the rapid growth of the national economy and the rapid increase in medical resources, people's demand for better treatment is also increasing.

To put it more concretely, in the past, when someone was suffering from three diseases and two pains, the first thing people would think of was to endure it;
Now that conditions are better and the government reimburses medical expenses, everyone is willing to go to the hospital if they feel unwell.

Naturally, the demand for Chinese herbal medicines has increased greatly as they are known by the public as having “few side effects” and “curing the root cause”.

He Ping continued:
"It is for this reason that the demand for Chinese medicinal materials in our country has been growing rapidly over the past two decades. Under the huge growth demand, quality is not so important!"

"Take astragalus, which is widely used in traditional Chinese medicine, for example. Astragalus can be divided into three qualities: low, medium and high according to the production years: one-year-old, two-year-old and three-year-old."

"The root system of annual astragalus is thin and short, and the taproot is not well developed. The content of its main components, 'astragalus polysaccharides', 'flavonoids' and 'saponins' is very low!"

"The root system of two-year-old astragalus is thicker, and the content of its three main components is also higher, but there is still a significant gap in medicinal efficacy compared with the three-year-old finished astragalus."

"but!"

"At present, whether it is herbal farmers or professional Chinese medicine planting companies in our country, the main crops they grow are annual and biennial astragalus."

"You should know that 'astragalus polysaccharides', 'flavonoid compounds' and 'saponins' are the most important ingredients of astragalus, which have important functions such as immune regulation, anti-aging, anti-tumor, and liver protection!"

"The older the age, the higher the content, and the more significant the medicinal effect!"

“But why is no one willing to plant it?!”

“Because the demand for annual and biennial astragalus is too great!”

At this point, He Ping took a breath:

"The planting cycle of annual and biennial astragalus is short, the capital turnover is fast, and the risk is low. You can quickly get a return on investment in one or two years!"

"Who wouldn't like this kind of quick and easy way to make money?!"

"Compared with one-year-old and two-year-old astragalus, the purchase price of three-year-old astragalus is a little higher, but it also carries the risk of loss due to waiting for an extra year."

"Of course, the most important thing is that the demand for three-year-old astragalus is far less than that for one-year-old and two-year-old astragalus. Most of them are exported to Japan and South Korea, and there are almost no domestic pharmaceutical companies willing to purchase them in large quantities."

Are there no domestic pharmaceutical companies willing to acquire in large quantities?

Why not?
This thought flashed through Zhang Yang's mind, and the words suddenly stopped at his lips.

He already realized the reason.

Just as He Ping said just now, the demand for Chinese medicinal materials has skyrocketed over the past two decades. Similarly, competition among Chinese patent medicine manufacturers is also very fierce.

Take the traditional Chinese medicine for treating colds, fevers, stomach problems and stomach pains for example. If you simply go to the pharmacy, you will find more than a dozen of the same type.

Top-quality medicinal materials are good, but the only drawback of good things is that they are expensive.

In such a fiercely competitive environment, how many pharmaceutical companies dare to significantly increase the cost and selling price of their drugs and boast about their significant drug efficacy?

Very difficult.

Let’s take Qingshan Pharmaceutical’s “Lung Toxin Clearing Granules” as an example. If we remove the ability of the granules to clear out “T14 protein” residues, the cost of this “cold granules” is as high as 29 yuan, and the retail price is as high as 68 yuan per box!
Ask yourself, how many people would buy it?

To know,
There are cold medicines on the market that cost 15 yuan or 20 yuan a box. Are you willing to buy them?

Therefore, this is a vicious circle. In order to increase sales, we can only choose cheap medicinal materials, but the effects of cheap medicinal materials are not very good.

Thinking of this, Zhang Yang gradually pulled his thoughts back to the current problem of shortage and price increase of high-quality medicinal materials faced by "Lung Toxin Clearing Granules".

After thinking for a moment, he decided to tell He Ping that he had already started applying for the clinical trial of "T14 protein clearer".

He exhaled gently and said comfortingly:

"He Ping, but you don't have to be too anxious."

"Let me tell you a good news. We are ready to produce 'T14 protein clearing agent' as a special medicine and launch it on the market. We are now applying for clinical trials."

"It should be officially available for sale in two to three months at the earliest, or in March or April at the latest. By then, a large number of patients who buy 'Fei Du Qing' will be diverted, and the demand for 'Fei Du Qing Chong Ji' will not be so urgent."

He Ping originally looked a little anxious, but he was suddenly surprised and happy.

"really?"

"of course it's true!"

"Ah, that's great!"

"Mr. Zhang, your news is really timely! Now those people who are hoarding medicinal materials and raising the price will be panicking!"

"Even our subsequent procurement work will be much easier!"

He Ping breathed a sigh of relief, his face filled with excitement.

But as he was speaking, he suddenly paused:
"Oh, right! You haven't announced this news to the public yet, right?"

"Um?!"

Zhang Yang was a little confused, but when he saw He Ping's expectant expression, he immediately reacted.

"Are you planning to use this information to handle some procurement matters?"

"I haven't announced it yet. If you need me to, I can cooperate with you. I will release the news whenever you think it's appropriate."

He Ping was overjoyed and nodded:

"Then thank you, Mr. Zhang."

"No thanks, it's just a small matter."

As they spoke, they both smiled at the same time, and then they both breathed a sigh of relief.

He Ping even walked in front excitedly, but after walking about ten meters, his originally excited expression gradually became calm, and even his pace slowed down.

Zhang Yang was very keen to notice the change in He Ping's mood.

But before he could ask, He Ping suddenly stopped and looked at Zhang Yang:

"Mr. Zhang, I suddenly thought of something and I don't know if I should tell you."

"Ok?"

Zhang Yang smiled and also stopped:
"We are all old friends. There is nothing we shouldn't talk about. Let's talk."

"Okay, Mr. Zhang, I'll tell you then."

He Ping no longer hesitated and continued:
"Mr. Zhang, although the news that you just said you were going to launch the 'T14 protein scavenger' did make us feel greatly relieved."

"But... from a friend's perspective, I think if you want to continue to use 'top-grade medicinal materials' to produce Lung Du Qing Chong Ji, or in other words, if you want to use top-grade medicinal materials as raw materials for Qingshan Pharmaceutical's Chinese patent medicines in the future."

"I suggest that you build Qingshan Pharmaceutical's own 'Chinese herbal medicine planting base'!"

"Chinese herbal medicine planting base?"

Zhang Yang was stunned. He obviously didn't expect He Ping to suggest that he establish a Chinese medicinal herb planting base.

"That's right, Mr. Zhang, I'm not giving you this advice on the spur of the moment."

"In fact, many Chinese patent medicine factories in China have established their own 'Chinese herbal medicine planting bases', but due to various reasons, they did not eventually form a large scale."

"But for someone like you who has a huge demand and requires top-quality medicinal materials, I really think it is necessary for you to build your own Chinese medicinal material planting base in the long run!"

“Firstly, not only will the cost of medicinal materials be reduced by about 15% to 20%;

Secondly, with our own 'Chinese herbal medicine base' as a backing, we will be able to cope with market fluctuations more calmly and better even if we encounter a situation like 'Lung Du Qing Chong Ji' where a large amount of high-quality herbal medicine is urgently needed in a short period of time next time."

"Moreover, the quality of Chinese medicinal materials grown in our own 'medicinal material planting base' is more controllable and the quality will be even higher."

"For example, the astragalus I just mentioned is only of high quality after three years. If it can reach four years, it is a top grade product, and the effect of making medicine will be better."

I have to say, what He Ping said does make sense.

However, after thinking for a moment, Zhang Yang shook his head and refused.

To be honest, Tsingshan Pharmaceutical's main business has always been the research and development of innovative drugs.

Even though the "Lung Toxin Clearing Granules" that are selling well this time are Chinese patent medicines, in reality it is just using the shell of Chinese patent medicines. The most important "core" is still the chemically synthesized organic substance "T14 protein scavenger".

Zhang Yang felt that it was an overreaction to set up a "Chinese medicinal material planting base" just for this business.

The simplest way is to purchase high-quality medicinal materials from outside as we do now. The cost may be a little higher, but it will be easy.

He Ping was a little surprised by Zhang Yang's refusal.

But he quickly came to his senses and tactfully stopped talking about the matter.

After thinking for a moment, he said:

"Mr. Zhang, since you are not interested, let's not talk about this matter."

"Just now when we were in the car, you said you wanted to see the production line. How about this? I'll take you to see our inventory warehouse first, and then to see the production line."

"How about it?"

Zhang Yang didn't think much about it and nodded.

"Okay, let's go to the warehouse first."

The warehouse for storing medicinal materials is located at the innermost part of the Lotus Pharmaceutical Park, a bit far from the main entrance.

He Ping immediately called a park vehicle, and about five minutes later, the two of them arrived in front of a huge factory building in the park vehicle.

Actually.

Before He Ping introduced it, Zhang Yang knew that this factory building must be a warehouse for storing medicines.

The reason is simple. Before entering the factory, standing outside the door, a strong smell of Chinese medicinal materials hits you in the face.

This smell is different from any chemical or biological agent. It makes you feel refreshed and invigorated when you smell it.

He Pingyi Ma is currently:
"Boss Zhang, please come in. This is the warehouse where we store the top-grade medicinal materials for our 'Lung Toxin Clearing Granule'!"

"Please go in and take a look."

"it is good!"

(End of this chapter)